11.

Debt

Debt consists of the following (in thousands):

	September 30, 2016			December 31, 2015
Equipment-based Facility	$	9,553		$	17,957
Less deferred loan costs		(891	)		(1,119	)
Equipment-based Facility, net		8,662			16,838
Notes payable for transportation and construction equipment and other		2,943			3,342
		11,605			20,180

Current maturities of long-term debt		5,009			5,192
Less current deferred loan costs		(356	)		(336	)
Less current maturities of long-term debt, net		(4,653	)		(4,856	)
Total long-term debt	$	6,952		$	15,324

Equipment-based Facility

At September 30, 2016, the Company had a borrowing base of $27.0 million, which was the result of calculating 65% of the appraised value (where appraised value equals net operating liquidated value) of the Company’s collateral.

During the three months ended September 30, 2016 the Company prepaid $5 million of the principal balance of our Term Loan and paid approximately $0.2 million as a prepayment fee which was recorded as “interest expense” in our condensed consolidated statement of operations.

Fair Value

The Company’s debt is recorded at its carrying amount in the condensed consolidated balance sheets. The Company uses an income approach to determine the fair value of its 12% Term Loan due May 29, 2019 using estimated cash flows, which is a Level 3 fair value measurement. As of September 30, 2016, the carrying values and fair values are as follows (amounts in thousands):

	September 30, 2016				December 31, 2015
	Carrying Value		Fair Value		Carrying Value		Fair Value

Revolving Loan	$	-	$	-	$	-	$	-
Term Loan		9,553		9,527		17,957		17,957
Total Equipment-based Facility debt	$	9,553	$	9,527	$	17,957	$	17,957

Notes Payable for Transportation and Construction Equipment

The Company has purchased and financed various transportation and construction equipment to enhance the Company’s fleet of equipment. The total long-term notes payable related to the purchase of financed equipment was $2.9 million at September 30, 2016 and $3.3 million at December 31, 2015. The purchases have payment terms ranging from 3 to 5 years and the associated interest rates range from 3.12% to 7.13%. The fair value of these notes payable approximates their book value.

Interest Expense

Interest expense related to our Equipment-based Facility and other debt for the three and nine months ended September 30, 2016 was $0.5 million and $2.2 million, respectively, and $1.1 million and $2.1 million for the three and nine months ended September 30, 2015, respectively. The decrease in interest expense for the three months ended September 30, 2016 was due to the decreased debt outstanding during the period. The slight increase in interest expense for the nine months ended September 30, 2016, was due to the prepayment fee discussed above and the higher interest rate on the Equipment-based Facility compared to the interest rate on our prior credit facility.